Asian stocks open higher after modest gains on Wall St | national

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By ELAINE KURTENBACH Business Writer AP

Stocks were mostly higher in Asia on Friday after Wall Street benchmarks managed to close largely higher.

Stocks rose in most major markets early in the session.

In China, a great communist party The meeting ended with a resolution paving the way for President Xi Jinping to remain the top leader for life. The decision was expected.

Party leaders hailed Xi’s role in the country’s rise as an economic and strategic power, endorsing a political history that gives it status alongside the party’s most important figures like Mao Zedong.

Although the Chinese economy has slowed after rebounding from a pandemic slowdown, the record $ 139.1 billion spent by Chinese buyers in the annual November 11 edition of this year Singles Day shopping extravagance suggested potential for resilient retail demand.

The Hong Kong Hang Seng Index gained 1% to 25,484.50 while the Shanghai Composite Index edged up 0.1% to 3,537.30.

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In Tokyo, the Nikkei 225 jumped 1.2% to 29,631.86, while South Korea’s Kospi gained 1% to 2,954.57. In Sydney, the S & P / ASX 200 also gained 1% to 7,454.50.

The latest streak of mostly solid corporate earnings is coming to an end after helping the wider market rise for weeks and hit a series of record highs. Inflation concerns, however, rocked investors throughout the week.

Recent data paints “a picture of a booming economy with widespread pricing pressures,” Oanda’s Craig Erlam said in a report.

“The Fed may ultimately be correct in its judgment that the pressures will naturally ease over time, as they are largely driven by temporary factors,” he said. “But how long can they afford to sit idly by and watch inflation drastically exceed their target? Are they really that confident in their assessment? The pressure is mounting.”

The benchmark S&P 500 is on track for its first weekly loss in six weeks. On Thursday it rose 0.1% to 4,629.27. The Dow Jones Industrial Average fell 0.4% to 35,921.23, largely due to a sharp drop in entertainment firm Walt Disney, which fell 7.1% after reporting gains in slower subscribers on its streaming channel and weak fourth quarter financial results.

The Nasdaq rose 0.5% to 15,704.28.

Tech stocks did the heavy lifting for the benchmark S&P 500, and chipmakers were particularly strong. Nvidia rose 3.2% and Qualcomm rose 2.9%. Banks also made solid gains. Citigroup rose 1%.

Tapestry, owner of Coach and Kate Spade, jumped 8.4% after posting strong financial results in the first quarter.

Smaller company stocks outperformed the market as a whole, a sign that investors were confident about economic growth. The Russell 2000 rose 0.8%.

Beyond meat fell 13.3% after reporting a much larger loss than analysts expected.

All major indexes retreated on Wednesday after the Labor Department announced higher than expected consumer prices in October. This followed data on Tuesday showing inflation at the wholesale level also increased in October.

Inflation worries pushed bond yields up sharply Wednesday, although the bond market was closed for Veterans Day on Thursday. The 10-year Treasury yield stood at 1.57% Thursday morning in Asia, against 1.55%.

The companies warned they were being stifled by rising raw material costs and supply chain issues. Consumers are already facing higher costs for essential items such as food, rent, cars, and fuel oil. Analysts fear cutting spending on discretionary items to focus on the essentials, which could then hamper the broader economic recovery.

Higher inflation is raising expectations that the Federal Reserve and other central banks will raise short-term interest rates deployed during the pandemic to encourage lending and spending. The Fed has already started cutting its bond purchases to keep long-term rates low.

In other exchanges, benchmark US crude oil fell 21 cents to $ 81.38 per barrel in electronic trading on the New York Mercantile Exchange. It gained 25 cents to $ 81.59 a barrel on Thursday.

Brent crude, the basis of international pricing, fell 23 cents to $ 82.64 a barrel.

The dollar fell from 114.07 yen to 114.16 Japanese yen. The euro slipped to $ 1.1448 from $ 1.1451.

AP Business Writer Damian J. Troise contributed.

Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.


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